Loss prevention management involves understanding a company’s vulnerabilities and preventing or reducing losses from property damage, theft, and fraud. This can include proper building design for hazards, creating a safer work environment, and stopping employee theft in retail.
Businesses buy insurance and invest in other ways to mitigate and overcome losses from property damage, theft and fraud. The best way to manage these losses, however, is to prevent them. The practice of loss prevention management is about understanding a company’s particular vulnerabilities and then trying to prevent them from occurring or reduce their impact, given the resources and nature of the company. There are different forms of loss prevention management, such as asset protection for retail organizations, loss prevention for workers, and loss control for facilities and other properties.
Property loss prevention involves proper design and construction of buildings so that they are not damaged by hazards such as fires, hurricanes, earthquakes, and snowstorms. For a hurricane, for example, a building’s roof can be strengthened so high winds don’t rip them off, and windows can be protected so they don’t shatter from flying debris. Loss prevention management for earthquakes, on the other hand, may involve properly protecting racking and other internal contents of a building while ensuring that the structure is able to withstand ground shaking from a tremor.
In the workers’ comp framework, loss prevention management is about creating a safer work environment so that employees are not injured while on the job. This can be a simple matter of requiring employees to wear non-slip shoes in a restaurant so they don’t slip while serving tables or working in the kitchen. For factory or warehouse employees, loss prevention management may involve teaching employees proper ergonomics so they can lift packages correctly and operate machinery safely. Another aspect of managing loss prevention for workers is building a culture of safety within the organization, from managers to hourly employees.
Retail loss prevention, also known as asset protection, begins by trying to stop employee theft, shoplifting, embezzlement, and fraud. When a loss occurs, this type of loss prevention management takes the form of a private investigation. Leak control professionals are responsible for managing store safety programs and dealing with any employees who may be responsible for leaks. Some of the main types of retail losses that loss prevention management professionals look for include stolen credit card usage, fraud checking, margin losses, and falling in love. The latter occurs when employees find competitive prices that are right for customers, offer special offers to friends and family, or reduce costs associated with deliveries and warranties.
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